NEFPORT ISSUE 46 – SEPTEMBER 2021
REAL ESTATE
INFRASTRUCTURE AND REAL ESTATE The review period witnessed several infrastructure projects nearing completion. The floods and landslides triggered by the heavy monsoon rain has caused damages to roads and bridges all over Nepal. Regulations have been introduced to improve and promote better use of infrastructure and real estate in the country. Upper House passed crucial aviation bills: The Upper House of
the parliament unanimously passed two bills allowing Civil Aviation Authority of Nepal (CAAN) to be split into two parts: a regulatory body and a service provider. The bills registered on 23 February 2020 were approved by the Upper House on 2 August 2021 and will be enacted 31 days after being signed by the president of Nepal. This bill hopes to get Nepali carriers removed from the EU Air Safety List, which banned Nepali airlines from flying to EU after the September 2012 crash of Sita Air flight 601, which killed 19 people.182 Feeder roads under Postal Highway nearing completion: The
construction of nine out of ten feeder roads of the Postal Highway has been completed in Morang, Saptari, Dhanusha, Mahottari, Dang, and Bara. The remaining road of 60 km is under construction, with 25 km being completed and 35 km expected to be completed in three months. The Postal Highway is expected to be completed in the Fiscal Year (FY) 2022/23.183 Chobhar Dry port to be operated by the Government: The newly built
Chobhar dry port will be operated by the government initially. After a certain period, the operation of the port will be transferred to the private sector through a competitive bidding
process. The documentation and custom clearance works will be done at the Chobhar dry port instead of at transshipment points.184
Kathmandu Valley is expected to be resumed by mid-February 2022.186
Janakpur – Jayanagar Railway Service ready for operation:
to the Department of Land Management and Archive, in the FY 2020/21, 1.2 million lands were plotted, a staggering increase from FY 2016/17 when only 0.52 million lands were plotted. The government had banned the plotting of arable land for building houses back in August 2017. Any land that was not deemed arable by the local authority, despite the type of land recorded in Ministry of Land Management, Cooperatives and Poverty Alleviation’s field book, was open for plotting. Local representatives, land revenue officers, and survey department officers have colluded to pass arable land as suitable for housing in order to enable land plotting.187
Nepal Railway Company Limited has completed all the preparations, including infrastructure and human resources, for the operation of Janakpur–Jayanagar railway service. An understanding between Government of Nepal and Government of India needs to take place before the railway comes into operation.185 Supply from Melamchi water project uncertain due to floods: The floods
in Melamchi river since June 2021 have caused severe damage to the head works of Melamchi Water Project. The accumulated debris from floods and landslide has covered the infrastructure with at least a 10 m thick silt. The Melamchi Water Project had cost a total of NPR 51 billion (USD 428 million) to complete. The damage is estimated to be NPR 2 billion (USD 16.8 million) and a preliminary budget for repairing the infrastructure of NPR 1.88 billion (USD 15.78 million) has been prepared. The government has planned to repair the headwork and other structures by mid-October 2021, and the supply of water to
Land plotting increasing despite Supreme Court’s order: According
Changes to land ceiling exemption:
The Land Ceiling Exemption Order 2021 has reduced the land holding ceiling for real estate companies. Real estate companies can hold 5.08 hectares in Hilly area, 2.5 hectares in Kathmandu Valley, and 13 hectares in Terai region. The ceiling was previously 15.2 hectares in Hilly area, 5.08 hectares in Kathmandu Valley, and 33 hectares in the Terai region.188 The order related to Exemption on Land Ceiling 2021 has provisions
47
